Healthcare sector comment – March 2013

Dato

March saw the completion of 14 deals in the UK healthcare market. An interesting announcement was Voyage Care’s acquisition of Independent Living Group (ILG). Hermes Private equity acquired ILG, and its 43 care homes, back in 2006, at the top end of the market. The Company had a troubled history, however a quality management team was bought in, which stabilised and turned the business around. The Company now has 33 care homes across Hampshire, Sussex and Kent where it provides community-based residential care for adults with severe learning difficulties. The transaction was funded with existing cash and a further injection of equity from Voyage’s majority shareholders, HgCapital and SL Capital Partners.

Another interesting announcement this month was the news that Amdipharm Ltd and Mercury Pharma Group Ltd, portfolio companies of Cinven Ltd, have merged to create a single, consolidated, international speciality pharmaceuticals company called Amdipharm Mercury Company Ltd (‘AMCo’). The merger allows AMCo to provide a better service to their partners and patients.

Deals

Target Healthcare REIT acquired four care homes from Ideal Carehomes, for a consideration of £18m. Target Healthcare is a specialist investor in UK care home assets.

Clinigen Group plc acquired Cardioxane, the oncology support therapy product of Novartis AG, for a consideration of £22m. Clinigen provides pharmaceutical products and services. Novartis is a company engaged in pharmaceuticals and operates in the areas of human health care, consumer health, agribusiness and animal health.

The Raglan Suited Ltd, the UK-based dental practice, was acquired in a management buy-out from Irish corporate Smiles Dental for an undisclosed amount.

AB Technology acquired Angel Biotechnology Holdings plc‘s manufacturing facility in Edinburgh, for an undisclosed amount. AB Technology is a company that was set up towards the end of last year by Medica Materia Holding (MMH), the Russian pharmaceutical company.

Collbio Ltd acquired the assets of Angel Biomedical Ltd, for an undisclosed amount. Collbio, is a new company set up by leading life science financiers DiagnosticCapital Ltd. Angle Biomedical is a medical grade collagen products manufacturer.

Target Healthcare REIT acquired a portfolio of three care homes from Balhousie Care, for a consideration of £14m. Target Healthcare is a specialist investor in UK care home assets.

MedAire Inc. acquired Ocean Medical International Ltd, for an undisclosed amount. MedAire offers medical and travel safety services to passengers and crew around the world, in the air, on land, or at sea. Ocean Medical is a UK-based yacht medical kits manufacturer.

Shire plc acquired Premacure AB for an undisclosed amount. Shire is a UK-based specialty biopharmaceutical manufacturing company. Premacure is a Sweden-based protein replacement therapy developer.

NeuroVive Pharmaceutcial AB acquired the assets of Biotica Technology Ltd, the UK-based biopharmaceutical company, for an undisclosed amount. The Sweden-based NeuroVive is a specialist in developing cyclosporine-based mitochondrial-protecting pharmaceuticals for the treatment of traumatic brain injuries (TBIs), reperfusion injury in myocardial infarction, stroke, and other acute injuries. The assets acquired include a portfolio of novel cyclophilin inhibitors, technology platform assets and related intellectual property rights.

Voyage Care acquired Independent Living Group (ILG) for an undisclosed amount. Voyage offers personalised support and care for people with learning disabilities, autism, head and spinal injuries, neurological needs and other complex conditions. ILG is a provider of community-based residential care for adults with severe learning difficulties.

Recovery and Rehabilitation Partnership, a joint venture company formed by Care UK and Sussex Partnership NHS Foundation Trust, acquired step-down, mental health hospital Nelson House, from Albion Ventures, for a consideration of £8m.

EKF Diagnostics Holdings plc acquired 360 Genomics Ltd for a consideration of £9.6m. EKF is a worldwide manufacturer of point of care equipment for the measurement of glucose, lactate, haemoglobin, haematocrit, and glycated haemoglobin. 360 Genomics is a UK-based cancers and infectious diseases diagnostic technology developer.

Bunzl plc acquired Labor Import Comercial Importadora Exportadora Ltd for an undisclosed amount. Bunzl is a ‘UK based’ company engaged in providing value added distribution and outsourcing services. Labor Import is a Sao Paulo-based medical devices manufacturer and wholesaler.

Capsugel Inc. acquired MW Encap Ltd (trades as Encap Drug Delivery) for an undisclosed consideration. Capsugel is a company that manufactures and sells drug capsules. Encap is a UK-based oral drug manufacturer.